The money will be raised in one or more tranches in the current and following years, the bank said.

Indian banks have to be complaint with the Basel-III norms by March 2019 and many banks have been raising capital towards their preparation to that.

A Fitch Ratings report in December had said banks in India will need about USD 140 billion to ensure full compliance with the Basel III norms by 2018-19.

RBI has introduced the Basel-III norms in a phased manner since 2013.

The norms are aimed to improve and strengthen regulation, supervision and risk management within the banking sector. Indian Bank shares closed at Rs 91.25 apiece on BSE, up 1.5 percent from previous close.